Decentralized finance
Definition
A blockchain-based financial system that enables peer-to-peer transactions for services like lending, borrowing, trading, and insurance without traditional intermediaries such as banks or brokers, primarily using smart contracts on networks like Ethereum.
An umbrella term for open-source financial protocols and applications (often called DeFi) that aim to recreate and innovate upon centralized finance functions in a trustless, permissionless manner.
Examples
After ditching his bank account, Alex jumped into decentralized finance, where 'yield farming' turned out to be less about tractors and more about algorithmic roulette.
In decentralized finance, forgetting your private key is like locking your fortune in a vault guarded by a dragon who only speaks Solidity.
She discovered decentralized finance during a crypto bull run, swapping stablecoins for dreams of lambos that mostly stayed pixelated.
Decentralized finance promised to bank the unbanked, but first required mastering terms like 'rug pull' that sound like bad magic tricks.
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